Checkpoint Organizational Structure

CheckPoint 1

Complete the matrix below to design your ideal organizational structure

Select one of these five businesses for which you will design an organizational structure

Mike 's College Store

Valley Central Hospital

Pluto Marketing

HYPERLINK "http /www .musiccentral-source .com Musiccentral-source .com

MegaGlobal Communications

Remember that although this is your business , it would be wise to create an organizational structure that best supports both the needs of the business and its employees

Design an organizational structure for your chosen business using the table below

Business

p 1 Mike 's College Store 2 Structure (Simple , Bureaucracy , etc

Simple structure 3 Number of Employees

Six (Owner /manager , one senior salesperson , three junior salespersons and one cashier 4 Work Specialization

Purchasing , inventory control , selling , and cashiering 5 Departmentalization

Administration (to include purchasing , inventory control , and cashiering ) and Sales 6 Chain of Command

Authority comes down directly from the owner /manager down to the salespeople and cashier . All employees are answerable directly to the owner /manager 7 Span of Control

There is only a span of five (four salespersons and one cashier . Since the span of control is narrow , the owner /manager is able to control the operation closely 8 Centralization and Decentralization

Owing to its simplicity , this is a highly centralized organization with the owner /manager making all management decisions 9 Formalization

Formalization is rather low since relationship between the owner /manager and the salespersons and the cashier is on a personal level , there is almost no job standardization , and employees , especially salespersons , have wide discretion in performing their jobs

10 Summary

The organizational structure is very simple , with authority and decisions coming from the owner /manager down to the five employees Relationship is not very formal . Employees are free to offer suggestions informally about any phase of the operation . The owner /manager gives instructions verbally and communication flows freely upwards , downwards and laterally Reference

Robbins , S .P (2005 . Organizational Behavior , Eleventh Edition Prentice-Hall...